UberX marks a year operating illegally in Philadelphia

One year after launching in Philadelphia, UberX remains a rogue transportation service.

The Philadelphia Parking Authority says UberX and a competing car-share service, Lyft, are operating illegally. If so, thousands of Philadelphians are abetting the crime.

Uber marks the anniversary Saturday of its ride-share service here by claiming it has provided rides to 700,000 people in Philadelphia during the last 12 months. Company officials say they have 12,000 drivers in the city. The company also pointed to a new Pennsylvania Senate bill that would set a permanent regulatory framework for the service.

"Ride-sharing is a different transportation model," said Taylor Bennett, an Uber spokesman. "That transportation alternative deserves a new set of rules."

City cab companies hate the service. Without the overhead that comes with cab medallions and meeting Parking Authority regulations, UberX can charge less.

"Our income before UberX came to town was excellent," said Khalid Khokhar, owner of the Philadelphia Taxicab Service. "This last summer, basically we lost a lot of money."

Taxi drivers such as Anthony Walker, 32, of Roxborough, are defecting. A former cabdriver, he now drives for UberX and Lyft. He says he is thrilled to be rid of the cab-leasing fees.

"I make the same money I would if I worked 12 hours in a cab ...," he said, "and maybe even a little bit more by working half the hours."

Uber has a range of transportation options, including UberSUV and UberBlack. Rides are summoned and paid for through a smartphone app. UberSUV and UberBlack are legal in the city because they are similar to limousine services. But UberX, UberXL (larger cars), and Lyft are operating ride-share services illegally. Outside Philadelphia, ride-share services can operate under a two-year agreement with the Pennsylvania Public Utility Commission.

UberX and Lyft drivers do not have commercial driving licenses. They use their own vehicles to ferry passengers and work on their own schedules. In the city, the Parking Authority has jurisdiction and has attempted to block ride-share operators. The agency says UberX is operating without a safety net for passengers, background checks on drivers, and vehicle inspections.

Parking Authority officials have attempted to snare UberX drivers by ordering rides through the app and then fining drivers, but Uber has technology to identify Internet addresses and cellphone numbers. If a call is a trap, the service will not respond to that number again, said Vince Fenerty, the authority's executive director.

"They're loaded with money, they want to do it their way, and we're trying to get it done for the safety of the general public by doing it the correct way," he said Friday.

In August, the Parking Authority sued San Francisco-based Uber USA seeking to recover $300,000 in fines.

Uber is not opposed to allowing the authority to regulate UberX in Philadelphia, but it denies that the service is risky, Bennett said.

The company checks drivers for criminal records and driving histories, and their vehicles must be no more than 10 years old, and be inspected, and registered.

"We have $1 million in commercial liability coverage for every single trip," Bennett said. "Every time a rider gets in that car, they're covered with $1 million for the duration of that trip."

The company supports an effort by Sen. Camera Bartolotta (R., Washington), who proposed a bill in August that would regulate ride-share services through the PUC. It would make the two-year operating agreement permanent, including in Philadelphia.

"This is the wave of the future. It's here," Bartolotta said Friday. "It's a good service, but we really have to be sure we're affording the consumer the safest experience."

jlaughlin@phillynews.com

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@jasmlaughlin